Lecture 5 week 5

1
Long-Term Objectives
To achieve long-term prosperity, strategic planners
commonly establish long-term objectives in seven areas:
– Profitability – Productivity
– Competitive Position – Employee Development
– Employee Relations -- Technological Leadership
– Social Responsibility

2
Qualities of Long-Term Objectives
There are five criteria that should be used in
preparing long-term objectives:
◦ Flexible
◦ Measurable
◦ Motivating
◦ Suitable
◦ Understandable

3
The Balanced Scorecard
• Tool
1) The balanced scorecard is a set of four measures
that are directly linked to the company’s strategy

4
Balanced Scorecard (contd.)
The scorecard allows managers to evaluate
the company from four perspectives:
 financial performance
 customer knowledge
 internal business processes
 learning and growth

5
 The Balanced
Ex. 7.1

Scorecard

6
Achieving Long-term objectives
Generic Strategies
A long-term or grand strategy must be based on a
core idea about how the firm can best compete in
the marketplace. The popular term for this core
idea is generic strategy.

7
The Three Generic Strategies
3 Generic Strategies:
• Striving for overall low-cost leadership in the industry.
• Striving to create and market unique products for varied customer groups
through differentiation.
• Striving to have special appeal to one or more groups of consumers or
industrial buyers, focusing on their cost or differentiation concerns.